C153770 Approval Letter - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I I Agenda Item 120. November 25, 1996 2 Preliminary engineering design work as well as a draft feasibility study have been completed by the NRCS, and by Steve Harris P.E., Durango. DISCUSSION The project involves rehabilitation of the dam to meet State Engineer safety standards, and rehabilitation of the collection and delivery ditches to meet existing delivery requirements. The proposed project will maintain the current reservoir capacity, and reestablish the original delivery capability of the system. The estimated project cost is $800K, and the Company will fund $200K itself. The remaining $600K cost is to be funded by a CWCB loan, or loans. The Company will prioritize all work to be performed, and schedule sub-projects over the next 7 years, rehabilitating the most serious portions of the system first. Sub-projects will be completed based on the financial capability of the Company and its shareholders. Water diverted by the SRIC is used for agricultural purposes, and the Company has requested a 30 year loan term. The 10an(s) should thus be at the 30 year "Agricultural" rate, to be set by the CWCB November 25, 1996. The Company needs to complete rehabilitation of the reservoir outlet this winter, to allow full reservoir storage in 1997. They have bridge loan funds to proceed with construction, but will need authorization to use CWCB funds to refinance a project already completed, COLLATERAL The CWCB would take a collateral interest in the stream of revenue from shareholder assessments. The Company would also provide one payment to be held by the State Treasurer. STAFF RECOMMENDATION The staff recommends: 1. That a Construction Fund loan, or loans, in total amount of $600,000 (not to exceed 75% of actual project costs), be approved for The Summit Reservoir and Irrigation Company to rehabilitate the Company's reservoir and ditch system, and